Frontera's Chevron Prepayment: A Tactical Fix in Colombia's Structural Energy Decline

The financial mechanics are straightforward and designed for immediate relief. Frontera will receive an initial advance of $80 million today, with the option to request an additional $40 million advance for up to 6 months on a fully committed basis. The cost of this financing is a discount calculated at the Secured Overnight Financing Rate (SOFR) plus 4.25% per annum. Crucially, repayment of the prepayment amounts will not begin until after a six-month grace period. This structure provides a vital six-month window to stabilize cash flows without immediate pressure on the balance sheet.